To make good money trading on the stock exchange, you need, so that your trading style matches your personal character as much as possible, circumstances, Experience. If trader has a penchant for one style of trading, then his results in a different style will be much worse, up to negative.
It's like working in a position you don't like.. Therefore, it is so important for a novice trader to know his niche in the market and act in his “own style”. Then synergy will work, and trade efficiency will go uphill.
WHICH STYLE OF TRADING TO CHOOSE?
The market is so diverse, as much as life itself. The main thing is to get well.
Range Breakout (Range break)
This is the simplest and most common trading technique.. All a trader needs is find the range (base, consolidation, flat) and wait for it to break through in any direction. Trader it doesn't matter, in which direction the range will be broken. It is important for him to enter when the range breaks.
Pattern Breakout (Breaking through the pattern (graphic figure))
In technical analysis of prices, there is a concept of a graphical figure or pattern. These figures include: triangle, flag, pennant, double bottom or top and so on. When a pattern is clearly formed on the chart, the trader will wait for the price to exit this pattern and start opening a position.
but, an inexperienced eye can see figures even where they are not. The figure should be clear and visible even to a five-year-old child.
Range (Range trading)
The advantage of this technique is, that you can trade it and make money even when the market is dormant.
Its essence lies in the fact, what do you buy at the bottom of the range and sell at the upper border. At the same time, work is carried out only with limit orders on a spread with short stops.. Usually, stop put immediately abroad Range on distance 2-3 cent.
You must have patience and a quick reaction., because other experienced traders will trade with you. To make money in this way, you should be among the first to enter and exit.
Scalping (scalping)
scalping is, I guess, the most sophisticated technique of all presented. Only 2-5 man from 1000 become successful scalpers. The essence of scalping is to take a few cents of profit and exit, to come back at the right moment for the sake of 3-6 cents profit. In this case, the scalper risks 1-2 cents. Scalper works in large volumes. It is typical for a scalper to trade several million shares per day., therefore the value of his commissions is the most important factor.
At the same time, the physical and psychological load on the scalper is the highest of all. You must weigh the pros and cons before you start scalping..
Bottom Pick (Purchase at the very bottom)
A very common technique for experienced day traders. The opportunity for "Batom Peak" arises in a situation of a sharp drop in the share price. The price is falling so fast, because of the big seller, but as soon as it is performed, the pressure will stop and the stack "soars" up like a stretched elastic.
"Batompicker" will try to enter exactly at that moment, when will the last seller be taken apart. At the same time, he constantly looks at the tape., to catch this very moment.
This technique is very dangerous., since if a rollback does not occur, the price drops sharply even lower and the trader can get big losses.
To trade "baht rush" you must read the tape well, understand pricing, and have a tough character and discipline.
Top Pick (Selling at the top)
This technique is the opposite of "batom lance". In it you are looking for parabolic acceleration stocks or just stocks, which have grown a lot in a short period of time and are shorting them.
The essence of "tap peak" is, that there are many buyers in the stock with its strong growth, who at some point come to get out of it. And, everybody knows, what if rollback starts, then it will be very fast.
Gap’s (Trading gaps)
Feature of price gaps, is the movement to close this gap or the continuation of the price movement towards the gap.
News Inertion (News inertial movements)
When unexpected and significant news about a campaign is released, the price may behave unpredictably. But often the crowd joins the initial reaction and the price rises or falls sharply.. There are traders and even automated trading systems, who begin to enter such movements in the hope of price momentum.
Correlation (Correlation trading)
Sector stocks are ranked by capitalization. The higher the capitalization, the higher the% weight and, accordingly, the price of such companies is a driver for the sector index. When the catalyst appears (for example, news) for such shares, they start their movement. but, shares that have less weight in the sector, often fall behind. It is these shares that can be "picked up", when will they catch up with their leaders.
Basket Trading (Trading a basket of stocks)
Applies in case, when you need to buy or sell many shares with one click. Has its advantage, if you need to take a very large position in a sector or index and at the same time have a minimal impact on the price. trade feature basket, is something, that you go in and out with a basket. The decision to exit is made solely on the basis of the P / L value..
Imbalances (Trade Imbalance) – MOC
By the end of the session, the specialist may have an unfulfilled order to buy or sell a stock. For 15 minutes before closing, experts collect MOC orders and show the number of underbought or undersold shares. If the number of such shares is more than 3-5% of the total volume per day, then the movement at the close can be very large.
